banking, security market & insurance section 1 MCQ Questions & Answers Detailed Explanation

Answer: (d)

Answer: (c)

IDBI Bank is an Indian government-owned financial service company, formerly known as Industrial Development Bank of India, headquartered in Mumbai, India.

IFCI: (Industrial finance corporation of India): It is an Indian government-owned development bank to cater to the long term financial needs of industrial sectors.

ICICI: It is an Indian multinational banking & financial services company headquartered in Mumbai.

Answer: (d)

Imperfect banknote means any banknote, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable but does not include a mutilated banknote.

Answer: (c)

A flexible exchange rate system is a kind of a monetary system which allows the exchange rate to be regulated by supply and demand in relation to other currencies.

Answer: (d)

Money laundering occurs in three steps:

1. the first step involves introducing cash into the financial system by some means called placement;
2. the second involves carrying out complex financial transactions to camouflage the illegal source called layering, and
3. the final step entails acquiring wealth generated from the transactions of the illicit funds called integration.

Money Laundering - It is the process of transforming the profits of crime and corruption into ostensibly legitimate assets.

Answer: (c)